In re Rossi

737 A.2d 880, 1999 R.I. LEXIS 177, 1999 WL 760683
CourtSupreme Court of Rhode Island
DecidedSeptember 21, 1999
DocketNo. 99-358-M.P.
StatusPublished
Cited by3 cases

This text of 737 A.2d 880 (In re Rossi) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Rossi, 737 A.2d 880, 1999 R.I. LEXIS 177, 1999 WL 760683 (R.I. 1999).

Opinion

OPINION

PER CURIAM.

This disciplinary case is before the Supreme Court pursuant to two separate recommendations of the Supreme Court Disciplinary Board (board) that the respondent, Steven M. Rossi, be disciplined for professional misconduct. We note at the outset of this opinion that the respondent was suspended from the practice of law on December 27, 1996, for nonpay[881]*881ment of mandatory dues to the Rhode Island Bar Association, and he departed from the state of Rhode Island in January 1997. However, he remains subject to the disciplinary jurisdiction of this Court.

The board conducted hearings on four complaints filed against respondent. Each of the hearings involved two consolidated petitions for disciplinary action, resulting in separate recommendations for discipline. The first recommendation of the board was that respondent be suspended from the practice of law for a period of sixty days, and in the second matter the board recommended disbarment.

Article III, Rule 6(d) of the Supreme Court Rules of Disciplinary Procedure provides, in part:

“If the [Disciplinary] Board determines that a proceeding * * * should be concluded by public censure, suspension or disbarment, it shall submit its findings and recommendations, together with the entire record, to this Court. This Court shall review the record and enter an appropriate order.”

Upon receipt of the board’s recommendations, this Court entered an order directing respondent to appear and show cause why he should not be disciplined. The respondent did not appear. Based upon our review of the record, it is our conclusion that the appropriate disciplinary sanction to impose is disbarment.

The facts of the four complaints considered by the board are as follows. On February 26, 1991, Keryn Macari (Macari) was injured as a result of an automobile accident. She received treatment for her injuries from Dr. Michelle Laneellotti, and incurred medical bills to Dr. Laneellotti in the amount of $1,540. Macari retained the services of respondent to represent her in a claim for damages arising from that accident.

On April 7,1994, respondent settled Ma-cari’s claim, and received a check in the amount of $10,500 on her behalf. He deposited that check into his office business account and not into a separate client’s account. From those settlement funds he paid Macari her portion of the settlement proceeds after deducting his fee and withholding sufficient funds to pay Dr. Lancel-lotti’s bill. However, he did not pay that bill until February 1996 after an investigation into respondent’s handling of this matter had been commenced by the Office of Disciplinary Counsel. That investigation resulted from an inquiry received by disciplinary counsel from Dr. Laneellotti. A review of respondent’s financial records revealed that these funds did not remain in the account, had been drawn down by respondent, and had been converted to his own use.

At the disciplinary hearing, respondent admitted the facts summarized above, but denied that he intended to convert those funds. He claimed that there was a legitimate issue as to whether Dr. Laneellotti was entitled to receive payment in full for the medical bill. However, the record is clear that respondent failed to safeguard these funds, and made no attempt to resolve a purported dispute over the bill until a disciplinary complaint was filed, at which time he made payment in full.

Based upon these facts, the board properly determined that respondent violated several rules of professional conduct. Article V, Rule 1.3 of the Supreme Court Rules of Professional Conduct provides “[a] lawyer shall act with reasonable diligence and promptness in representing a client.” When respondent withheld funds from Maeari’s settlement to pay her outstanding medical bill he assumed a duty to either promptly pay the bill or take appropriate steps to resolve any issues regarding the validity of that bill. By failing to take any action for a period of almost two years, respondent neglected his duty to his client in violation of this rule. While the client was not actually harmed by this period of delay, she remained at risk for any claim that Dr. Laneellotti was entitled to assert. This Court has previously determined that actual harm to the client is [882]*882not a necessary prerequisite to finding a violation of Rule 1.3. In the Matter of Watt, 701 A.2d 319, 320 (R.I.1997).

The respondent also violated his fiduciary duty to safeguard client funds entrusted to his care. Article V, Rule 1.15(a) of the Supreme Court Rules of Professional Conduct requires that an attorney segregate funds of clients or third parties in a separate client account. By depositing the settlement check into his business account he commingled funds in violation of this rule. His failure to forward payment to Dr. Lancellotti for a period of almost two years violated Rule 1.15(b), which requires that a lawyer in possession of funds belonging to a third person must promptly deliver those funds to the person entitled to receive them. His conversion of funds entrusted to his care is in violation of Article V, Rule 8.4(c) of the Supreme Court Rules of Professional Conduct, which provides that “[i]t is professional misconduct for a lawyer to * * * engage in conduct involving dishonesty, fraud, deceit or misrepresentation.” See In the Matter of Watt, 701 A.2d at 320; In the Matter of Hodge, 676 A.2d 1362, 1363 (R.I.1996).

The board also heard evidence regarding respondent’s representation of Tammy and Michael Hulbert (the Hulberts). In 1987, the Hulberts retained respondent to represent them regarding the purchase of a home in Johnston, Rhode Island. The subject real estate was not connected to the municipal water supply and received its supply of drinking water from an existing well. The sellers expressly guaranteed the potability of the well water in an addendum to the purchase and sales agreement.

Subsequent to closing on the real estate transaction, the Hulberts determined that the well did not supply drinkable water. They retained respondent to commence a civil action against the sellers and the sellers’ agents for breach of contract. The respondent filed a civil suit in the Superior Court in November 1987, and obtained service .on all the defendants. However, he did not file a motion to assign the case to the trial calendar, or commence discovery on behalf of the Hulberts. There was no activity in the case after 1989.

The Hulberts periodically communicated with respondent regarding the status of their claim. He misled the clients by leading them to believe that depositions would be taken and that the case would soon be reached for trial or court annexed arbitration. In November 1994, Michael Hulbert contacted the court scheduling office to determine when the case would be reached for trial, and learned that the case had not been assigned to the trial calendar. When he confronted respondent with this information, he was assured by respondent that his case would be heard in the courts. However, respondent failed to take any affirmative actions on behalf of the Hul-berts and continued to mislead them regarding their case.

The Hulberts filed a disciplinary complaint against respondent which resulted in formal charges being levied against him by the board.

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737 A.2d 880, 1999 R.I. LEXIS 177, 1999 WL 760683, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-rossi-ri-1999.